Economists have evaluated Russia’s losses from counter-sanctions

Alexey Sukhorukov | RIAN

A research by teams from the Centre for Economic and Financial Research (CEFIR) and the Russian Presidential Academy of National Economy and Public Administration (RANPEA) has found that Russian consumers lose $7 bln a year through higher prices of foods banned under Russian counter-sanctions.

As for the declared import substitution effect, it was achieved only in the production of tomato, pork and poultry, the economists concluded. Real prices of these products rose by 2016, but fell below the pre-sanction level two years later. The three products annualy save consumers RUR 75 bln ($1.8 bln), while their total losses are estimated at RUR 445 bln ($7 bln), or about RUR 3K ($47) per person, the Kommersant business daily writes. So overall, the prices have gone up significantly, which is especially sensitive for the poorest segments of the population.

When introducing the counter-sanctions in 2014, officials argued the policy would help achieve food security. However, according to the research, Russian consumers are the ones shouldering their costs. Although the counter-sanctions generally benefit domestic manufacturers, they have failed to substitute most of the items covered by the embargo, the economists add.

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